San Antonio Communities that Qualify for USDA Home Loans - FAQ's

San Antonio Communities that Qualify for USDA Home Loans - FAQ's

So...you are thinking about purchasing a home here in San Antonio & have started to hear about USDA Loans...

Now, I know, when most people hear "USDA", their first though is probably "meat"...

"USDA" stands for United States Department of Agriculture...This department actually handles thing that have to do with everything from Agriculture, to Food & Nutrition, to Rural Community Development.

Within the Rural Development Housing & communities Facilities Programs, you will find the Rural Development Guaranteed Housing Program...which is where we get the USDA Home Loans.

Here are some answers to  frequently asked questions about the USDA Home Loans (information cited from the USDA website).

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Frequently Asked Questions (Applicants)

Q.      How much cash will I need to purchase a home?

A.      Most transactions require little or no cash contribution.

Q.      How much can I borrow?

A.      This will be determined by the lender based on your repayment ability and the appraised value of the home.  For information on how lenders determine repayment ability, click here.

Q.      What will my monthly payment be?

A.      The monthly payment will include principal, interest and the monthly cost of real estate taxes and insurance.  Your lender will provide an estimated payment for you.

Q.      Is there monthly mortgage insurance?

A.      No.  There is a one-time guarantee fee charged by Rural Development that can always be financed into the loan.

Q.      What is the maximum loan amount?

A.      There is no maximum except as limited by the appraisal and your repayment ability.

Q.      I do not use credit.  Will this prevent me from qualifying for the loan?

A.      Your lender will make the credit decision.  They are permitted to use a non-traditional credit report or verify your creditworthiness with other sources, such as: utility payment records; rental payments; insurance payments; child care payments; payments to local stores, payments on medical bills, etc. 

Q.      In addition to the home purchase, what else can be financed into the loan?

A.      Closing costs and repairs can be financed up to the appraised value. 

Q.      Can a self employed person qualify for this program?

A.      Yes, you must provide two years earnings statements indicating your income level. See your lender for more information.

Q.      Can I get cash back from closing to pay off other loans or refinance my credit cards?

A.      No

Q.      Can I use this loan program anywhere?

A.      The loan is limited to small communities and rural areas as designated by Rural Development.  Locate eligible areas at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Q.      Do income limits apply to this loan?

A.      Yes.  Total household adjusted income limits vary by household size and location. 

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Even though you may not think that the area you are looking to live in here in San Antonio is not a "rural" area, you may be surprised at many of the communities that qualify for USDA Home Loans...Including communities from the Stone Oak & North San Antonio area to the Far West / Lackland / Seaworld area...

For more information on USDA Home Loans & San Antonio Communities that qualify for USDA Home Loans, give us a call (210) 209-8711 or shoot us an email today!